HIGHLIGHTS
- China Mobile, China Telecom, and China Unicom are all prohibited in the United States.
- This year, the operators intend to deploy one million 5G base stations.
- China Mobile has around one billion subscribers.
Three Chinese enterprises took their position beside three Western companies on a platform intended for the largest players in the global telecoms sector – and pushed the idea that they wanted to "operate together." However, China Mobile, China Telecom, and China Unicom have been forbidden from conducting business in the United States, significantly limiting their worldwide ambitions.
The US authorities cited security and the potential of Chinese state intervention as reasons for Huawei's exclusion from the US market in 2020.
With a tiny worldwide footprint, all three companies used their presentations at the Mobile World Congress in Barcelona to highlight their accomplishments in their native country.
"By the end of 2022, we plan to have deployed over one million 5G base stations, with over 330 million users using 5G networks," said Yang Jie, CEO of China Mobile.
The deployment of 5G – a quicker, more efficient mobile network — is regarded as critical for a variety of future technologies, including self-driving cars and smart industrial machines.
However, the rest of the world lags far behind China, and economists are concerned that excluding Chinese enterprises from the global market may cause more harm than good.
'National security' risks
Vodafone CEO Nick Read was unambiguous in his address to the MWC about Europe's problem.
"At (the) present rate, Europe will not be able to match the revolutionary, complete 5G experience that China will have accomplished this year until the end of the decade," he warned.
The three state-owned enterprises have been critical to this initiative.
China Mobile has about one billion subscribers, making it the world's largest company by far. Each of the other two Chinese corporations has more than 300 million subscribers. And all three are aggressively promoting 5G.
"If we look at the globe as it is currently, at least on the consumer side, 65 percent of 5G is in mainland China," Omdia research analyst Dario Talmesio said.
In the region, he added, "a body of expertise, experience... and best practises" was being built.
"Can the rest of the world declare firmly, 'We don't need that'?"
The US government feels it is unnecessary.
The US Federal Communications Commission banned China Unicom in January, citing concerns that the business might be used by the Chinese government and presented "serious national security and law enforcement dangers."
The battle lines have been formed, but for the time being, the three Chinese corporations have been cautious not to explicitly challenge the US prohibition.
Yang concluded his video presentation by stating that China Mobile is "ready to collaborate with all sectors of society" to "unleash the unlimited potential" of 5G and other technology.
Ruiwen Ke, CEO of China Telecom, stated his desire to "collaborate" in order to "build a better future."
According to Ben Wood of research company CCS Insight, the Chinese corporations were on a "hearts and minds campaign," utilising their platform in Barcelona to highlight China's broad strengths.
"The Chinese are really proud of what they have done and want to come and convey that tale," he explained.
"And they want to ensure that they set the agenda for future technological progress."
Wood and Talmesio both emphasised the significant advantage that Chinese enterprises have due to the sheer magnitude of their domestic 5G market.
In Barcelona, Talmesio said the companies were sending a "clear message": "We're here, we're still worldwide, we're willing to do business with anyone if they'll let us."
